Final answer:
Checking accounts offer payment options like writing checks and using debit cards, which provide easy access to funds and immediate transaction capabilities. Some checking accounts also pay interest similar to savings accounts under certain conditions. It is crucial to manage account balances to prevent overdrafts.
Step-by-step explanation:
Checking accounts are designed to facilitate transactions, providing several payment options for account holders. The primary methods include writing a check, which allows an individual to pay for goods or services directly from their account when the recipient cashes the check at their bank. Another common method is using a debit card, which, similar to a credit card, can be used at merchants that accept major credit cards but differs by directly and immediately withdrawing funds from the user's checking account. Furthermore, some modern checking accounts now offer features traditionally associated with savings accounts, such as the ability to earn interest on deposits if certain balance requirements are met.
These blended features are complemented by the facility to access funds through automatic teller machines (ATMs) for both checking and savings accounts. However, with savings accounts, you typically cannot write checks directly, although you can withdraw cash easily using an ATM or electronic transfer. It's important to manage these accounts carefully to avoid overdrafts, which occur when payments or withdrawals exceed the available balance in the account.